Global cues see Indian markets open with caution

After posting significant gains in the previous sessions, buying interest may continue on the back of a firm trend. However, caution should be exercised as the market may move in tandem with Asian indices which are marginally up in current trades. Investors should also take into account the prevalence of strong intra-day volatility. Among the key local indices, the Nifty could test higher levels at 5088 and 5100 while it has a strong support at 5025. The Sensex has a likely support at 17050 and may face resistance at 17500.

US indices notably the Dow Jones witnessed a subdued trend and ended lower on Tuesday at 14047, while the tech-laden Nasdaq gained marginally to close six points up at 2747.

Indian floats had a mixed outing on the US bourses. Infosys, Satyam, Wipro, ICICI Bank, HDFC Bank, MTNL and Rediff gained around 1-4% each while Dr Reddy's, Tata Motors, VSNL dropped over 1-5% each.

Crude oil prices in the international market closed marginally down on Tuesday, with the Nymex light crude oil for November delivery slipped by 19 cents to close at $80.05 per barrel.